Dollar Holds Near Two-Month High Amid Data-Driven Week Ahead

The US dollar held near its two-month high on Monday as investors looked forward to a data-packed week for clues on inflation and central-bank policy. The euro fell short of $1.1386, hovering close to two-month lows against the greenback and on track for a 2% decline in September.

Sterling remained stable at $1.3247, near a three-month low after Bank of England Governor Andrew Bailey reiterated his warning about a rate hike. The dollar index eased slightly to 101.12 but was still set for its best gain since June with a 1.7% rise this month.

The yen dropped 0.3% at 157.7 per dollar, while the Australian dollar fetched $0.70125 and the kiwi strengthened 0.1% to $0.5670. Offshore yuan also gained slightly to 6.714 per dollar.